Nigerian Exchange Yellow Card Foresees Crypto Boom Following Central Bank’s Ban Lift

Yellow Card, a Nigerian cryptocurrency exchange, views the recent guidelines from the Central Bank of Nigeria (CBN) lifting the ban on crypto transactions as an opportunity for increased legitimacy and integration with the traditional financial system. Lasbery Oludimu, the Chief Data Protection Officer and Vice President of Legal, Commercial, and Product at Yellow Card, expressed in an interview that the shift from the dominant peer-to-peer market during the ban to increased banking support could foster competition and innovation in Nigeria’s crypto space.

Oludimu confirmed Yellow Card’s belief that cryptocurrency usage in Nigeria will experience a surge in 2024 due to the new CBN guidelines and the lifting of the ban on crypto transactions. According to her, this directive will establish a more structured and regulated environment for crypto transactions. The reintroduction of banks into the crypto sector is expected to bring increased competition and transaction efficiency, potentially encouraging collaboration with traditional financial institutions.

Yellow Card sees the CBN guidelines as a positive step, fostering innovation and creating a conducive environment for legitimate businesses like theirs to operate. The move is anticipated to benefit users, increase crypto adoption rates in Nigeria, and contribute to the broader crypto ecosystem. Oludimu emphasized that the regulatory framework provides clarity, boosting confidence and trust in Nigeria’s crypto sector. Yellow Card aims to capitalize on the guidelines by seeking strategic partnerships, expanding its user base, and introducing innovative solutions aligned with the newly established regulations.

The CBN’s release of guidelines for digital assets on December 22, 2023, allows virtual asset service providers, including cryptocurrency organizations, to open accounts with Nigerian banks. This marks a significant shift, coming two years after the central bank imposed restrictions on banks and financial institutions from operating accounts for cryptocurrency service providers.